Electronic reimbursement of customs broker

ABSTRACT

Disclosed herein are methods of automatically reimbursing a customs broker for payments made to a customs agency on behalf of an importer. The methods include procedures for balancing broker payments and for automatically verifying that data provided by the broker coincides with data provided with shipments of imported goods. The methods further include procedures for adjusting broker payments where deviations are detected in the verification processes.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation of and claims priority to U.S. patentapplication Ser. No. 10/745,956, entitled “HARMONIZED TARIFF SCHEDULECLASSIFICATION USING DECISION TREE DATABASE,” filed Dec. 24, 2003 (nowU.S. Pat. No. 7,792,862, issued Sep. 7, 2010), which claims priority toU.S. Provisional patent application No. 60/436,679, filed Dec. 27, 2002,entitled “Trade Compliance System.” This application is also related toU.S. Pat. application Ser. No. 10/779,039, entitled “TWO-PASS HARMONIZEDTARIFF SCHEDULE CLASSIFICATION,” filed Feb. 13, 2004 (now U.S. Pat. No.7,693,854, issued Apr. 6, 2010), which is a continuation of applicationSer. No. 10/745,956. This application is also related to U.S. patentapplication Ser. No. 10/790,513, entitled “AUDITING OF CUSTOMS ENTRYPACKETS,” filed Mar. 1, 2004 (now U.S. Pat. No. 7,739,248, issued Jun.15, 2010) which is a continuation of application Ser. No. 10/745,956.

This application also claims priority to the following U.S. provisionalapplications: HARMONIZED TARIFF SCHEDULE CLASSIFICATION USING DECISIONTREE DATABASE, application Ser. No. 60/484,884, filed Jul. 02, 2003;Two-Pass HARMONIZED TARIFF SCHEDULE CLASSIFICATION SYSTEM, applicationSer. No. 60/485,025, filed Jul. 02, 2003; HARMONIZED TARIFF SCHEDULECLASSIFICATION USING ENTRY DATA, application Ser. No. 60/484,845, filedJul. 02, 2003; CUSTOMS DUTY AUDIT USING POST ENTRY DATA, Ser. No.60/484,844, filed Jul. 02, 2003; LINKING CUSTOMS ENTRY PACKETS TOELECTRONIC ENTRIES, application Ser. No. 60/484,843, Jul. 02, 2003;ELECTRONIC REIMBURSEMENT OF CUSTOMS BROKER, application Ser. No.60/484,835, filed Jul. 02, 2003; and TRADE COMPLIANCE SYSTEM ONLINESCREEN NAVIGATION AND LINKAGE, application Ser. No. 60/487,858, filedJul. 15, 2003.

The content of all of these applications is incorporated herein byreference as though fully set forth herein.

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present invention relates generally to processes for ensuring animporter's compliance with domestic customs requirements. Morespecifically, the invention relates to systems and methods forcorrecting erroneous information reported to customs agents, as well asthe effects of such erroneous reports, after the imported goods to whichthe reported information refer are received by the importer.

2. Description of Related Art

When a company imports goods from foreign sources, the company issubject to numerous U.S. Customs regulations. One set of requirements isbased upon a complex classification system created by U.S. Customs,known as the Harmonized Tariff Schedule (HTS) code. Within this system,U.S. Customs classifies types of products using 10-digit HTS codes.These codes are used, for example, in determining the applicable tariffrates on different types of products imported into the U.S. An companyimporting goods must correctly classify imported products under the HTScode. This task is especially difficult for companies that import alarge variety of products, such as automobile parts, because of numerouscomplexities in the classification system.

Large importers of foreign goods often employ customs brokers to serveas agents between the importer and U.S. Customs. Brokers fulfill anumber of duties related to ensuring the importer's compliance withcustoms rules, including gathering and delivering information regardingimported goods to customs agents. One such duty is classification ofgoods under the HTS code. A customs broker working for the importertraditionally classifies imported products by assigning what he decidesare the appropriate HTS Codes. The broker also assigns what are known as“attribute classifications,” meaning classifications of other relevantattributes, such as classifications relating to NAFTA Certificates,anti-dumping and Department of Transportation specifications. Inaddition, a large number of parties may be involved in the importationprocess. For example, the importer may be working with a large number offoreign manufacturers or suppliers. Each imported item, from everymanufacturer and every supplier, must be accounted for within the HTSclassification system. In the case of an imported automobile, whoseparts may originate from a variety of different overseas sources,vendors and suppliers, providing HTS classification for each part andeach component is a daunting and difficult task, with many inherentcomplexities.

Once assigned, the customs broker reports classifications to U.S.Customs and pays duties on behalf of the company based on the reportedclassifications. Unfortunately, the information reported to U.S. Customsby the customs broker sometimes fails to conform to the actual factssurrounding the goods imported. For example, a broker may not be able todiscern precisely how many parts are contained in a carton, or may beunable to accurately classify certain automobile parts that do notclearly fall within one of the Customs-defined HTS codes. For example,an automobile typically includes a transmission system which, in turn,includes a variety of individual components. Each of these componentsmay need to be assigned an HTS code when the transmission system isimported. Assigning and tracking individual HTS codes manually is anextremely complicated and difficult task, particularly for majorcorporations involved in significant import or export activity. Also,classification codes assigned by a corporation, which a broker may thenuse to classify imported goods, may be initially incorrect in thecorporation's records. This may occur, for example, because ofsubsequent information received from third parties relating to aparticular part. Information obtained from various entities within theimportation process, recent U.S. Customs Rulings, and the like may bearon whether initial classifications established by corporate analystswere correct in the first instance or have been modified subsequent totheir establishment. Because of these and other complexities in theclassification process, such subsequent information often gets lost oroverlooked.

Moreover, complications can be inherent to the import process itself. Atleast four distinct phases of operation may exist as part of thisprocess—namely, (i) a pre-entry or classification process, (ii) an entryprocess, (iii) a post-entry process (including audits and paymentbalancing), and (iv) an amendment process. Each such phase oftenincludes a complicated set of procedures, many of which are dependentupon or interrelated to other procedures. The phases also usuallyinclude a complex set of data concerning importation procedures, whichdata may contain many other relevant dependencies andinterrelationships. These procedures and interrelationships must oftenbe integrated and managed in a meaningful way so as to ensure fullcompliance with U.S. import regulations.

Managing and communicating necessary information to and from an importerand a customs broker can also be important. Customs brokers may beappointed by the importer to prepare the necessary paperwork for a givenshipment or set of shipments, such as a U.S. Customs 7501 form, acommercial invoice, and a shipment manifest and to present those formsto U.S. Customs when the goods are imported into the country. Customsbrokers may also tender tariff payments to U.S. Customs, and aresubsequently reimbursed by the importer. The reimbursement process isoften slow because of its cumbersome nature. Typically, reimbursementrequests or invoices are submitted by the broker to the importer, whomust then enter data from the broker's request into a computerizedsystem. Then a process of invoice balancing, reimbursement approval andgenerating payment for the broker begins. Each step of this process mayrequire a different person or different data, and there is nocentralized system for providing the data or access to multiple personsor entities.

Because of the difficulties described above, and other complexitiesinvolved in the classification, reporting and customs brokerreimbursement process, broker reimbursement may be unduly cumbersome andtime consuming.

SUMMARY

In view of the various problems discussed above, there is a need for animproved mechanism for receiving and processing customs brokerreimbursement requests. The forms created by customs brokers for eachimportation, including a U.S. Customs 7501 form, a commercial invoice,and a shipment manifest, are forwarded to the importer in addition tobeing presented to U.S. customs. These forms collectively establish an“entry” in the importer's trade compliance management system. There is aneed to balance this information against information received from theseller who shipped the goods, and to determine whether and for how mucha customs broker should be reimbursed for duty paid on behalf of theimporter. There is a need for this amount to be compared to an amountrequested by the broker, and to do so from a centralized mechanism thatallows access to each type of data described above, and provides thecapability to perform each type of processing described above.

In one aspect of the present invention, a method of reimbursing acustoms broker for payments made to a customs agency on behalf of animporter includes receiving electronic customs data from the customsbroker and storing it in a computer system, the customs data includinginformation reported by the customs broker to a customs agency aboutshipments of imported goods from one or more sellers, receiving anelectronic reimbursement request from the customs broker and storing itin a computer system, the reimbursement request including a request forreimbursement of money paid by the customs broker to the customs agencyas a duty on some of the shipments of imported goods, establishing alogical link within the computer system between the reimbursementrequest and a portion of the customs data that corresponds to theshipments of imported goods for which the reimbursement request has beensubmitted, comparing information within the reimbursement request to theportion of the customs data that has been logically linked to thereimbursement request, and determining, as a function of the comparison,whether the customs broker should be reimbursed according to thereimbursement request.

In another aspect of the present invention, computer-readable mediaembodying a program of instructions executable by a computer to performa method of reimbursing a customs broker for payments made to a customsagency on behalf of an importer. The method includes receivingelectronic customs data from the customs broker and storing it in acomputer system, the customs data including information reported by thecustoms broker to a customs agency about shipments of imported goodsfrom one or more sellers, receiving an electronic reimbursement requestfrom the customs broker and storing it in a computer system, thereimbursement request including a request for reimbursement of moneypaid by the customs broker to the customs agency as a duty on some ofthe shipments of imported goods, establishing a logical link within thecomputer system between the reimbursement request and a portion of thecustoms data that corresponds to the shipments of imported goods forwhich the reimbursement request has been submitted, comparinginformation within the reimbursement request to the portion of thecustoms data that has been logically linked to the reimbursementrequest, and determining, as a function of the comparison, whether thecustoms broker should be reimbursed according to the reimbursementrequest.

In yet another aspect of the present invention a computer system isconfigured to perform a method of reimbursing a customs broker forpayments made to a customs agency on behalf of an importer. The computersystem includes an input configured to receive electronic customs datafrom the customs broker, a memory device configured to store thereceived electronic customs data, the customs data including informationreported by the customs broker to a customs agency about shipments ofimported goods from one or more sellers, the input further configured toreceive an electronic reimbursement request from the customs broker, thememory device further configured to store the electronic reimbursementrequest, the reimbursement request including a request for reimbursementof money paid by the customs broker to the customs agency as a duty onsome of the shipments of imported goods, and a processor configured toestablish a logical link within the computer system between thereimbursement request and a portion of the customs data that correspondsto the shipments of imported goods for which the reimbursement requesthas been submitted. The processor is further configured to compareinformation within the reimbursement request to the portion of thecustoms data that has been logically linked to the reimbursementrequest, and is further configured to determine, as a function of thecomparison, whether the customs broker should be reimbursed according tothe reimbursement request.

It is understood that other embodiments of the present invention willbecome readily apparent to those skilled in the art from the followingdetailed description, wherein it is shown and described only exemplaryembodiments of the invention by way of illustration. As will berealized, the invention is capable of other and different embodimentsand its several details are capable of modification in various otherrespects, all without departing from the spirit and scope of the presentinvention. Accordingly, the drawings and detailed description are to beregarded as illustrative in nature and not as restrictive.

BRIEF DESCRIPTION OF THE DRAWINGS

Aspects of the present invention are illustrated by way of example, andnot by way of limitation, in the accompanying drawings, wherein:

FIG. 1 is a block diagram of entities involved in the customsimportation process.

FIG. 2 is a flow diagram of a Trade Compliance System (“TCS”) inaccordance with an embodiment of the present invention.

FIG. 3 is a main menu screen in an exemplary TCS in accordance with anembodiment of the present invention.

FIG. 4 is a diagram of a decision tree in accordance with an embodimentof the present invention.

FIG. 5A is a flowchart of a decision tree classification system inaccordance with an embodiment of the present invention.

FIG. 5B is flowchart of procedures and entities involved in aclassification process of the TCS in accordance with an embodiment ofthe present invention.

FIG. 6 is a form for accessing a particular commodity group of interestin accordance with an embodiment of the present invention.

FIG. 7 is a screen of the TCS containing an Item Master classificationlink in accordance with an embodiment of the present invention.

FIG. 8 is a screen for accessing an Item Master of the TCS in accordancewith an embodiment of the present invention.

FIG. 9 is another screen for accessing an Item Master of the TCS inaccordance with an embodiment of the present invention.

FIG. 10 is another screen for accessing an Item Master of the TCS inaccordance with an embodiment of the present invention.

FIG. 11 is another screen for accessing HTS codes in an Item Master ofthe TCS in accordance with an embodiment of the present invention.

FIG. 12 is a flowchart of the use of an internal-to-commodity groupclassification map in accordance with an embodiment of the presentinvention.

FIG. 13 is an internal-to-commodity group/HTS code classification map inaccordance with an embodiment of the present invention.

FIG. 14 is an HTS code classification map in accordance with anembodiment of the present invention.

FIG. 15 is a flowchart showing classification and import entryprocedures in accordance with an embodiment of the present invention.

FIG. 16 is a flowchart of a procedure for comparing brokerclassifications with entry data in accordance with an embodiment of thepresent invention.

FIG. 17 is another screen of the TCS for accessing entry history inaccordance with an embodiment of the present invention.

FIG. 18 is another screen of the TCS for accessing HTS codes and otherproduct attributes in accordance with an embodiment of the presentinvention.

FIG. 19 is a flowchart of a customs duty audit using post-entry data inaccordance with an embodiment of the present invention.

FIG. 20 is a screen of the TCS and associated entry audit links forperforming post-entry procedures in accordance with an embodiment of thepresent invention.

FIG. 21 is another screen of the TCS for accessing entry audit resultsin accordance with an embodiment of the present invention.

FIG. 22 is another screen of the TCS for accessing audit exceptions inaccordance with an embodiment of the present invention.

FIG. 23 is another screen of the TCS for accessing audit exceptions byaudit group in accordance with an embodiment of the present invention.

FIG. 24 is a flowchart of a method for linking entry packets toelectronic entries in accordance with an embodiment of the presentinvention.

FIG. 25 is another screen of the TCS showing entry packet documents inaccordance with an embodiment of the present invention.

FIG. 26 is an electronic CF7501 Customs Entry summary document inaccordance with an embodiment of the present invention.

FIG. 27 is another screen of the TCS for providing entry historyinformation in accordance with an embodiment of the present invention.

FIG. 28 is a flowchart showing a method for two-pass HTS classificationin accordance with an embodiment of the present invention.

FIG. 29 is a flowchart showing a method for electronic reimbursement ofa customs broker in accordance with an embodiment of the presentinvention.

FIG. 30 is a flowchart showing an on-line navigation linkage system ofthe TCS in accordance with an embodiment of the present invention.

DETAILED DESCRIPTION OF ILLUSTRATIVE EMBODIMENTS

The detailed description set forth below in connection with the appendeddrawings is intended as a description of various embodiments of thepresent invention and is not intended to represent the only embodimentsin which the present invention may be practiced. Each embodimentdescribed in this disclosure is provided merely as an example orillustration of the present invention, and should not necessarily beconstrued as preferred or advantageous over other embodiments. Thedetailed description includes specific details for the purpose ofproviding a thorough understanding of the present invention. However, itwill be apparent to those skilled in the art that the present inventionmay be practiced without these specific details. In some instances,well-known structures and devices are shown in block diagram form inorder to avoid obscuring the concepts of the present invention.

All goods entering the United States are usually categorized by type ofproduct, in accordance with the guidelines set forth in the HarmonizedTariff Schedule. In this process, called classification, the importermay assign an HTS code to all imported merchandise. Classification of anitem should be completed prior to shipment to the United States, and maybe required by law at time of entry.

In addition to determining how much duty U.S. Customs collects,classification ensures that importing companies maintain complete andaccurate records of all of their imports, including what the productsare, where they were made, and what they are made of. Classification mayalso determine admissibility of merchandise, application of anti-dumpingor countervailing duties, requirements for other governmental agencies,and the Census Bureau of Statistics, and whether products may beeligible for reduced duty under special trade programs.

As such, under U.S. Customs' guidelines, importing companies may beresponsible for utilizing all available resources to determine correctclassification. In addition, companies, should be able to provide alegitimate rationale for all HTS assignments at the time ofclassification, and offer proof of consistency in assigning HTS codesfor like components.

Classification, however, is only one part of the importation phase. Anentry phase may include a series of processes and procedures wherebydata relating to specific shipments and associated documentation may berecorded and maintained by the importing company. Entry packets aresubmitted by a customs broker to U.S. Customs. Audits may be performedduring this entry phase, and U.S. Customs typically gives a several daywindow for an importer to submit an amended entry packet in the event aninternal audit identifies errors or inconsistencies in the customsbroker's information versus information maintained by the importer. Theentry process may also involve a sophisticated scheme for entering,maintaining, and reviewing various types of records and documentation.

A post-entry phase is one in which the importer may integrate additionalinformation from other sources (such as the receiver of the shipment)and may perform a post-entry audit by comparing information regardingclassification and shipments obtained from various sources toinformation concerning the actual number of items that entered into theUnited States during the entry process. As discrepancies or errors areflagged during post-entry audits, and shortages or overages in tariffspaid are identified, the importer may fill out a formal Amendment tobring these discrepancies to the attention of U.S. Customs.

Finally, a subsequent amendment phase may also exist wherein variousthird parties, including U.S. Customs, customs brokers, suppliers,divisions internal to the importer, and others, may request informationfrom the customs division of the importer. The customs division of theimporter may thereupon perform a series of inspections, audits, ordata-gathering processes in order to provide the requesting entity withthe documentation it needs.

FIG. 1 shows an illustrative block diagram of the entities involved inthe typical importation process. An importing company 100 may include asingle company operating domestically, or may include a number ofdivisions located both domestically and/or abroad. The importer 100 mayalso employ its own customs department or division for managing theoverall importation process. The importer 100 may, for example, be asupplier of automobiles, motorcycles, and automobile parts. As such, theimporter 100 may use a number of different vendors or suppliers tosupply parts to the importer 100 or on behalf of the importer 100 forentry into the United States. When the importer wishes to import ashipment of merchandise, it may provide relevant information about theshipment and its classification criteria to a separate customs broker104. The customs broker obtains this information from the importer 100and, through the importer 100, separate vendors, suppliers, foreignmanufacturers, and freight forwarders 102, may identify informationpertinent to the shipment earmarked for entry into the United States.The customs broker prepares the appropriate paperwork for presentationto U.S. Customs 106 for the purposes of determining the correct duty tobe paid. The forms prepared or presented by the customs broker mayinclude a CF7501 form (also known as a 7501 form), commercial invoice,and shipment manifest.

After the duty is paid and the products are imported from a port oforigin into the United States at a designated port, various types ofaudits may be performed by the importer 100 or by Customs 106 to ensurethat the goods entering the country were appropriately classified perU.S. Customs regulations and that the proper tariffs were paid by theCustoms broker.

A Trade Compliance System (“TCS”) of the present invention is introducedherein to streamline the entire process for all phases of importation ofgoods into the United States. The TCS may include an integratedweb-based application that is designed to improve, and facilitate easeof, compliance with applicable import regulations. The TCS may embody acollection of networked database structures, including a mainframesystem or collection of data storage devices for storing information anda Global Integrated File Transfer (“GIFT”) for transferring data througha secure conduit to various divisions of the importer, including, forexample, divisions located in foreign country, if applicable. Forexample, a company may create a new part number and store the partinformation relevant to U.S. Customs compliance. The information may bekept is a particular database, residing in one embodiment in thecorporate mainframe system and available for authorized users on thecorporate intranet. Parts may be periodically added to the database, andinformation pertaining to these parts may be updated and amended asappropriate. The TCS in one embodiment includes an integrated anduser-friendly tool set to maintain customs-related records in a coherentand logical manner so that they can be easily identified, linked toother related documentation, audited, and modified as appropriate. TheTCS may also include an electronic system for providing efficient andmore, accurate audit procedures. Such audit procedures are madeefficient and the associated changes to records, if any, may be insertedinto an integrated system for cohesiveness and availability to relevantpersonnel. Navigation through this integrated system can be maderelatively seamless. Entries and amendments into this system may belinked together in a logical structure so that the importer can (i)accurately generate classifications and other records, (ii) efficientlyinterface with outside vendors and customs brokers, (iii) identify andcorrect any discrepancies in records maintained in the system and/orpresented to U.S. Customs, and (iv) accurately and more efficientlyreimburse customs brokers for tariffs paid.

The information in the database may be transferred to other divisions ofthe company. Consider the case of a corporation that has locations inthe United States and Japan. In this situation, the corporation locatedin the United States may maintain a master database of parts along withthe requisite information relevant to U.S. Customs compliance. The“sister” corporation or division in Japan may manufacture those partsfor importation into the United States, or it may obtain those partsfrom foreign vendors. Alternatively, the foreign vendors may directlyimport certain products into the United States on behalf of thecorporation. The corporation in the United States may periodicallytransmit information pertaining to its database of parts and relevantCustoms classifications to the corporate division in Japan, so that thelatter has the necessary information to keep its records up to date withthe domestic division. In this instance, the United States division ofthe corporation may transmit the relevant part and associatedinformation to the Japanese division via the GIFT interface referencedabove. The GIFT conduit provides for a secure and reliable method ofperiodic delivery of information between corporate divisions located indifferent regions of the world. Other secure methods of transmission maybe contemplated.

FIG. 2 shows a flow diagram of the TCS system in accordance with anembodiment of the present invention. For conceptual purposes, theprocess flow may be segmented into four discrete processes: (i) thepre-entry or classification process (103), (ii) the entry process (105),(iii) the post-entry process (107), and (iv) the audit process (109).Generally, block 75 and associated blocks 79, 81, 83, 85, 87 and 89represent information sources that may be used for the variousprocessing steps. In addition, blocks 143, 145, 147 and 149 representvarious potential recipients of pertinent information. Blocks 113, 115,117 and 119 reflect specific functions that may be performed inconnection with the processes with which they are respectivelyassociated. Cylinders 121, 123, 125, 127, 129 and 131 represent theactual integrated database repositories within which various items ofinformation may be stored. Not explicitly shown in this figure is theweb or other interactive application interface to enable the user toaccess and manipulate the various data structures as necessary and inaccordance with each phase of the importation process.

The pre-entry process 103 will first be described. For purposes of thisembodiment of the TCS, the pre-entry process is the initial processwhereby the importer performs the relevant classification of theimported parts consistent with U.S. Customs regulations for the purposeof determining the tariff to be paid. The sources of information 79 forthe pre-entry process are pertinent U.S. Customs regulations and rulings(e.g., from a Customs tariff handbook or other source) and, in thisembodiment, a PWC tool set which embodies a comprehensive collection ofthose regulations and rulings. In the embodiment described, the PWC is asoftware tool set including a plurality of Excel spreadsheets, a dataset integrated within the spreadsheets, and an image file of each partor item subject to classification. The PWC tool set may contain acomprehensive and encompassing collection of bases for classificationsof various HTS codes to different parts, including regularly updatedrulings which impact the classification criteria for assigning HTScodes. The PWC tool set may be electronically updated on a periodicbasis, and may be available for consultation by users of the TCS who areperforming relevant classification functions.

Classification criteria 91 and 111 may collectively represent a“decision tree” which, in one embodiment, includes a series of Excelspreadsheets designed to allow an employee or trade compliance analystof the importer to isolate, for a part of interest, a particular HTScode. Generally, the U.S. Customs classification process may requirethat a series of questions relating to a particular item for importationbe answered. That is, items for importation are categorized based oncertain criteria provided by U.S. Customs (and subject to U.S. Customsrulings). As explained at greater length below, at the top of thedecision tree in the classification criteria blocks 91 and 111 may be aninitial classification group or a commodity group. The analyst may beginwith the commodity group corresponding to the item at issue, and may beled through the decision tree by answering questions specific toclassification of that part (e.g., The part's function? The part'scomposition?). When the analyst comes to the end of the decision tree,he or she may arrive at a particular HTS code, which may then beassigned by the TCS to the item at issue. That assignment may thereuponbe stored in the TCS database for subsequent use and appropriate review.

A conceptual diagram of the decision tree used in the classificationcriteria step 91 and 111 is shown in FIG. 4 (described below). While anExcel spreadsheet is used for purposes of this embodiment, otherapplications may be equally suitable for formulating the decision treeand such applications fall within the scope of the present invention.

Referring back to FIG. 2, block 81 represents exemplary informationsources that may be used by the analyst to (i) determine the parts to beimported into the United States, and (ii) assign the appropriate HTScodes to those parts in light of the classification criteria 91 and 111.Sources for this information include “ABD” (e.g. a division of theimporter abroad), “Co.” divisions (domestic divisions of the importingcorporation), and any other foreign manufacturers or suppliers 81 thatare working for or in concert with the importer to supply imported partsinto the country on behalf of the importer. Such information sources mayinclude orders, invoices, bills of lading, and the like.

In step 93, the analyst may utilize the classification criteria 91 and111 (as described above) to determine the specific type of product to beimported and its relevant attributes. As noted above, the attributes ofthe product may dictate what specific classification the product fallsinto, and therefore what HTS code will ultimately be assigned to theproduct. However, other product attributes may be important inperforming various import functions. For example, a product entitled toa NAFTA certificate may be given special treatment by U.S. Customs. Theapplicability of anti-dumping or countervailing duties may be identifiedfor specific items. DOT, FAA and other regulations or restrictions mayfurther be relevant to certain products. Accordingly, at step 93, anyadditional product attributes beyond classification for tariff purposesmay be assigned by the analyst.

In addition, as shown in block 83, foreign corporate divisions and/orforeign vendors may supply vendor addresses 95 to the importer. Theseaddresses may be used in connection with the pre-entry process 103 whenassigning certain product attributes or for classifying certain partswhere origin of those parts is a relevant criterion.

Block 113 of FIG. 2 represents a summary of three specific functionsthat may be performed in the pre-entry process 103 in one embodiment ofthe present invention. First, the analyst may perform the appropriateclassification of the product using the decision tree, a U.S. Customshandbook, and the PWC tool set to identify a basis for theclassification. Second, as discussed above, the analyst may assign anyrelevant product attributes (e.g., NAFTA certificates, etc.) that maybear on an issue pertinent to importation, duty paid, or U.S. Customs.Third, the analyst may identify various details concerning any foreignmanufacturers or suppliers whose parts, for example, are earmarked forimportation into the United States. The analyst may store informationregarding the identity of these foreign manufacturers and any criteriarelevant to the classification process of the items they provide.Product origin, appropriate classification using the decision treedatabase and justified by information from the PWC tool set, and otherfeatures pertinent to entry into the United States may thereby beassigned or identified in step 113.

The procedures outlined in step 113 may be performed in connection withan integrated TCS database 124. The TCS database 124, in one embodiment,may constitute a collection of related data repositories which may takea variety of forms such as tape drives, hard disk drives, non-volatilememory, etc. The integrated TCS database 124 may include a collection ofdata-specific repositories including an HTS Master 121, Item Master 123,Vendor Master 125, Entry History 127, Payments and Adjustments 129, andAmendments 131. The various functions of these repositories will bedescribed as they become pertinent to the description at hand.Generally, the type of physical storage devices that may contain theserepositories of information will depend on the characteristics of theimporter. For example, where the importer is a single business entityoperating in a building on the west coast, the database may constitute aplurality of appropriately-configured hard disk drives controlled by acentral computer. Where the importer is a large and sophisticatedbusiness entity with multiple divisions, the database may be networked,geographically distributed, stored as a SAN (“Storage Area Network”),stored on tape drives, or otherwise.

The HTS Master 121 in the embodiment shown may constitute acomprehensive database repository of HTS codes, loaded and updatedperiodically from a U.S. Customs tape. The HTS Master 121 may be linkedto an Item Master 123, which is an information repository of parts forimportation. The Item Master 123 in one embodiment has links tocorresponding HTS codes. As such, the analyst can select a specificproduct from the Item Master 123 and click on the product as a link,which may bring up a corresponding HTS code from the HTS Master 121along with the applicable rules for classification which correspond tothat code, as well as other information relating to the shipment.

In addition, a Vendor Master 125 may include a linked repository ofinformation concerning the identity of various vendors whose parts maybe imported into the United States for or on behalf of the importer.Associated with each vendor in this repository, if applicable, is acollection of information pertaining to the attributes of thatparticular vendor that may be pertinent for compliance with U.S. Customsregulations. In one embodiment, the Vendor Master 125 may also be linkedto the Item Master 123 and HTS Master 121, so that an analyst canseamlessly navigate through information pertaining to a particularproduct for importation, any relevant product attributes, pertinentinformation concerning a particular vendor, and the applicable HTS codeassociated with that product.

In step 133, the analyst may extract the pertinent classificationinformation which may constitute an electronic report containing acomprehensive list of the parts and products to be imported at a giventime, the associated HTS codes, the justifications for assignment ofthose codes (“bases for classification”), and other informationpertaining to quantity, etc. This analyst may then provide thisclassification information to an ABD division (e.g., a corporatedivision abroad), to various domestic corporate divisions, and to thecustoms brokers that may actually be providing the forms to U.S. Customsand paying the tariffs on the items to be imported. These entities arereferenced in block 143.

The entry process 105 will now be described. Generally, the entryprocess 105 may refer to a series of events that occur during and afterthe entry of the goods into the United States. The TCS in one embodimentprovides a vehicle for enabling accurate and efficient recordation andperformance of entry-based functions. The TCS also may provide a linkfrom information relating to events in the entry phase to informationrelating to other phases, including classification.

A customs broker typically submits an entry packet to U.S. Customs thatcorresponds to an importation of specific merchandise. The customsbroker also pays the applicable tariff based on the importation of thatmerchandise. In the entry process 105, the initial information sourcesas referenced in block 85 may be, among others, the suppliers, freightforwarders, and customs brokers. The suppliers are typically (althoughnot necessarily) the manufacturers of the part(s) to be imported. Theparts from the suppliers may be provided to the freight forwarders, whomay assume the responsibility of actually shipping the goods from thelocation abroad into a port in the United States. Customs brokers suchas, for example, FEDEX Trade Network or UPS, handle and process thedocumentation pertaining to the importation of the products once theyreach the United States. In preparing the necessary entry packets forsubmission to U.S. Customs, the customs brokers may often rely oninformation concerning the shipment(s) at issue from the suppliers andfreight forwarders, or the importer (block 85).

In the embodiment shown, the customs broker receives the classificationinformation prepared by the importer's analyst (block 143). In additionto that information, the customs broker may receive all relevantdocumentation and information from the suppliers and freight forwarders,such as the invoices and bills of lading of the parts to be imported(block 85). Based on this information, the customs broker may gatherinformation sufficient to prepare an “entry packet” of informationrelevant to the imported products, including their classifications,commercial invoices, etc (block 97). The entry packet may also includethe U.S. Customs 7501 form which sets forth the tariffs to be paid onthe imported products based on the values provided by the suppliers andthe bills of lading. The entry packet may also include the commercialinvoice(s) along with a shipment manifest. In one embodiment, the entrypacket is in an electronic format so that it can be seamlessly insertedinto the TCS database 124, as shown in step 115. In particular, theentry packet includes a series of electronic documents and images,rather than paper copies this information can thereupon be inserted intothe Entry History repository 127 of the TCS database 124 for recordkeeping purposes. In this manner, the entry process may be effectivelycoordinated with the pre-entry process because all information is keptin a central integrated database. That is, the TCS provides a logicallink from the entry history repository 127 to the other datarepositories, so that all of the items can be cross-referenced and auser can navigate among the repositories to find necessary information(e.g., in performing audits).

In one embodiment, the customs broker has access to the Item Master 123,which may also be called the product dictionary. As needed, the customsbroker can consult the product dictionary to ascertain part attributesand identify the HTS code classifications assigned to items by theimporter. After the customs broker has all the necessary informationfrom the suppliers, freight forwarders, and the customs department ofthe importer, the customs broker may collect and prepare thecomprehensive entry packet information (step 35) and submit thatinformation to U.S. customs as the shipment enters a designated port inthe United States and is received by U.S. Customs (block 145). Thecustoms broker will typically also pay the necessary tariff on behalf ofthe importer. In addition to submitting the entry packet information toU.S. Customs, the customs broker may also submit the entry packet to thecompany's Customs department (or similar group responsible formaintaining such records) (step 145). The entry packet information canthen be incorporated into the entry history repository 127 of the TCSdatabase 124, where it can be subsequently analyzed and audited (seebelow). In sum, in the entry process of one embodiment, (i) the goodsare imported into the United States, (ii) the customs broker prepares anentry packet of information describing the relevant attributes of thegoods for the purpose of computing tariffs, (iii) the customs brokersubmits the entry packet to U.S. Customs and back to the importer, and(iv) the customs broker pays the applicable tariff on the imported goodsto be subsequently reimbursed by the importer. In addition, the entrypacket information supplied by the customs broker in electronic formatmay be integrated into the TCS database for accurate record-keeping andauditing purposes.

Post-entry 107 represents the process whereby any necessary adjustments(including audits for shortages and/or overages) are made. Inparticular, an audit may be performed whereby the quantity and otherrelevant attributes of goods actually received in the United States by areceiving business entity such as a division of the importer—includingthe corresponding tariff actually paid by the customs broker to U.S.Customs—is compared with the quantity and attributes of the goods listedin the description in the entry packet and the tariff computed prior toor during entry of the goods into the United States. As discussed below,any appropriate adjustments are made based on discrepancies identifiedbetween the information in the TCS concerning a shipment and the actualshipment received by the intended domestic entity.

Generally, after goods are shipped into the United States, the importermay receive post-entry information from various sources concerning theshipments. The applicable receiving division of the company, includingother corporate divisions, may report to the importer the actual amountand nature of parts imported into the United States. For example, if 600widgets were to be shipped from a vendor in Japan to a parts division ofthe importer in the United States, the receiving parts division mayreport to the importer the actual number of widgets received. If 800widgets were actually received but 600 widgets were documented by theanalyst in the entry process and the tariff was computed and paid basedon that understanding, for example, an overage may be identified and anadjustment prepared for submission to U.S. Customs to notify itaccordingly (i.e., not enough tariff paid). Conversely, if 400 widgetswere actually received but 600 widgets were documented by the customsbroker and a tariff were paid on the full 600 widgets, a shortage isreported. The post-entry process 87 of the present invention addresses amethod for streamlining the shortage/overage adjustment method forincreased efficiency and accuracy, and for enabling more organizedintegration of electronic record keeping.

Accordingly, in this embodiment, based on the information sources inblock 87, electronic records are generated of the amount of paymentsmade and goods actually received in the United States (step 99). Thisinformation is then compared with the information contained in thevarious repositories of the TCS (such as, for example, the Item Master123 and the entry history 127). This comparison is one of the post-entryfunctions, and is often called an entry audit (step 117). Essentially,what was imported into the United States should usually be the same aswhat was actually declared by the customs broker to U.S. Customs. TheEntry History 127 is updated accordingly to account for anydiscrepancies. In addition, as part of the post-entry step 117, paymentbalancing is performed whereby the declared value is compared to theactual payment made to the supplier. This information may be updated inthe Payments and Adjustments repository 129, integrated in oneembodiment within the TCS database. Accordingly, when shortages oroverages are paid or received, this information may be updated inPayments and Adjustments 129. In addition, where an audit entry historybased on information in the Item Master 121 or other informationreflects an error condition, an audit exception may be generated. Thataudit exception may, for example, be recorded as an amendment inAdjustments repository 131. Thereupon, an entry amendment 137 may begenerated and reported to the importer's customs department, the customsbroker, and U.S. Customs (block 147). The entry amendment may reflect areport of an overage paid to U.S. Customs, so that the importer may beappropriately credited for its overpayment of tariffs. Conversely, theentry amendment may reflect a report of a shortage, so that the customsbroker or importer may need to pay an additional duty to compensate forthe tariff underpayment. Where an amendment is submitted as in 137, thePayments and Adjustments repository 129 may be updated accordingly toreflect the shortage or overage and corresponding additional remittance,if any, to U.S. Customs.

In addition, an audit process 109 may be integrated into the TCS. Aspart of this process, information requests 101 may be received from avariety of sources, such as from U.S. Customs, the importer's internalcustoms department, other divisions of the importer, etc. (block 89).These information requests may be for various purposes, such as internalrecord-keeping, tax compliance, external audits, or other purposes. Inthe course of this process, management reports, ad-hoc reports or otherfiles may be generated for business purposes or for further refinementand compliance with U.S. Customs procedures (step 119). In oneembodiment, the audit process 109 and associated functions 119 arelinked to the integrated TCS database 124 so that information may betransferred to and from the various repositories and records and may beelectronically updated and easily accessed and modified as necessary.The reports and extracted files based on this audit (139 and 141) may bethereupon submitted to the requesting entity, as shown in block 149. Therequesting entities may include U.S. Customs, corporate divisions,corporate customs, or other sources.

As can be seen from FIG. 2, the TCS may provide a sophisticated level ofintegration between the four phases of operation in customs compliance.As will be seen, the web-based or other application that allows the userto input, access, and update the information in the underlyingrepositories may provide robust navigational capabilities and may allowsfor cross-checking for accuracy and consistency with regard to theinformation recorded in various phases for a given shipment.

FIG. 3 shows an example of a main menu screen of the TCS. Once a userlogs into the system, the user can navigate through the entire TCSdatabase system to perform various functions, provide updates, or enterinformation. Blank 301 in this example may allow an analyst to perform asearch of the Item Master repository. Menu 303 provides various optionsavailable to a system administrator. Menu 305 provides options forclassification, including providing links to the Item Master and VendorMaster, among others. Menu 307 enables the user to view the entryhistory of a shipment or set of products based on a variety of differentcriteria. Menus 309 may provide a large variety of additional optionsfor navigating through the TCS and accessing or inputting informationduring the various phases of the importation process.

Assignment of HTS Codes

Generally, to comply with applicable Customs regulations, companies mayassign HTS codes in the required format for imported and exported parts.HTS is the tariff schedule used by U.S. Customs. HTS may be used toidentify imported items to U.S. Customs, to determine the rate of importduty, and to identify additional compliance information required forimported products. HTS assignments are based on criteria including, forexample, U.S. Customs HTS, Customs Rulings, Customs Request forInformation (CF-28), Customs Notice of Action (CF-29), telephonenotifications from customers of the company, and Customs corrections tothe entries.

In general, a company may assign HTS codes for all products and allrelated product information prior to point of entry—i.e., into theUnited States. The mechanisms associated with preservation of all ofthis information can be complex to say the least. A Customs entrygenerally may not be filed without an accurate classification. Further,new parts should be classified before shipment. In addition, allrequired trade compliance-based part technical information should beavailable at the time of classification. When a new part number isestablished, the required trade compliance-based part technicalinformation may need to be defined and stored. To help ensurecompliance, the company should be able to classify, at or before thetime of import, any unclassified parts. Any changes regardingclassification that affect other aspects of or information in thedatabase should also be updated.

A company may generally maintain an audit trail of HTS assignments andchanges per Customs requirements. The company should be able to providesound rationale and proof of consistency in the assignment of HTS codes.Further, the company should be able to audit and modify the expandedparts description for Customs, HTS codes, rationales for changes or HTSselections, etc.

For all of these reasons, a company should have a robust TCS thatenables a company to easily navigate to various HTS codes that areassociated with various commodity or classification groups. The systemshould include an integrated yet user-friendly mechanism for auditing,sorting, comparing, and generating reports of parts, descriptions, HTScodes, and other classification criteria at will.

In one aspect of the TCS, a classification process is based on a systemof “commodity groups.” A commodity group is a category of merchandisethat is assigned to a product to narrow the range of possible HTS codeassignments as a beginning procedure for an analyst in working toward aspecific tariff classification.

In determining a classification, the domestic corporate division in thisembodiment may make use of various database information and varioustypes of selection tables. A selection table is a spreadsheet laid outin a decision-tree format that starts with a commodity group and, basedon part data, allows step-by-step refinements in classification until asingle HTS code is isolated. Selection tables may rely on answers toquestions such as material, location, measurement, and function.

Accordingly, in one embodiment of the present invention, a TCS includinga decision tree classification system may be implemented for enablingseamless and organized access to, and preservation of, necessaryinformation to ensure full compliance with applicable Customs laws andregulations. The TCS may include an integrated network, web or otherapplication that preserves and maintains access to required Customsinformation such as Classification, Quantity, Transaction Value(Reported and Unreported), Record keeping, and other specific parametersor compliance areas that may be necessary to meet or comply with thenumerous and specific standards for imported items. Depending on theparticular company, the parameters above may describe many differenttypes of imported items such as, for example, automobiles, servicereplacement parts, motorcycles, power equipment, racing parts, and thelike.

TCS may enable the selection, extraction, storage, and maintenance ofHTS information so that the pertinent user can inquire, update andreport on the tariff schedule. In one embodiment, the HTS validates eachimported item with the appropriate duty rate(s) and tariff structure forproper classification as described in the HTS.

The decision tree classification system may include an application orset of applications, such as a client/server application suite or a webapplication. The system may allow an analyst to quickly and efficientlyassociate an HTS code with a particular product, and to preserve thatassociation electronically for future record-keeping purposes. Actingthrough a user interface and under the control of a database managementsystem, an analyst or applicable company employee or contractor mayselect among a number of different commodity group classifications atthe top of a decision tree database as a first step in assigning an HTScode to an item designated for subsequent importation (The decision treedatabase may be commonly referred to as a hierarchical database). Theanalyst may use the database management system of the TCS to navigate toa particular commodity group by first navigating to a menu containing asubset of specific commodity group selections. The analyst may proceedto navigate down the decision tree by successively making more specificclassification group selections until the analyst ultimately arrives atthe end of a branch—namely, a particular HTS code. This code may then beautomatically assigned by the computer application to the specificproduct at issue and the assignment may thereby be recorded in the TCSdatabase.

FIG. 4 shows an example of the decision tree according to an embodimentof the invention. The decision tree is implemented in this embodiment asa part of the pre-entry process as described in greater detail inconnection with FIG. 2. Letters A, B, and C represent respectivecommodity groups. Using the TCS system, the analyst can select theappropriate commodity group for the product he or she wishes toclassify. The analyst thereupon navigates to a first subgroup which mayinclude option F. If the analyst selects commodity group B, for example,the analyst's selection may link to sub-group F, which presents to theanalyst in one embodiment a question about the product (such as theidentity, function or composition of the part). These questions may beclassification tools provided by U.S. Customs and used for determiningappropriate HTS codes for tariff rates. The analyst in this example hasthree options in a second sub-group consisting of options G, H, and I.In one embodiment, G, H, and I represent second questions concerning thenature of the product to be classified. For example, G, H and I mayprovide various options relevant to the composition of the product atissue. Depending on the analyst's selection, the analyst may benavigated to a third subgroup comprising a series of additionalquestions regarding the part at issue—namely, J, K, L, M, N, O and P.Assuming the analyst selects J, the analyst is brought in this exampleto a fourth subgroup which includes question Q. The analyst then answersthe question by selecting, e.g., one of two answers S and T. Assumingthe analyst selects S, the analyst is brought to the correct HTS codefor that product, which is thereby assigned by the TCS system to theapplicable HTS code. This code can subsequently be transmitted alongwith other information to the pertinent data repository as well as tothe customs broker as various shipments for importation are scheduled.

In other embodiments, the analyst may select a commodity group anddirectly be linked to an applicable HTS code. Further, in the examplewhere the analyst selects commodity group C, the analyst may thereafterselect option W in one sub-group and be directly linked to theappropriate HTS code without being required to navigate throughadditional sub-groups.

The TCS may be accessed by an individual with applicable permissions by,for example, signing into the TCS with a recognized username andpassword. The TCS can include a “main screen” similar to the screenshown in FIG. 3, which may simply include a web page with color-codedgroups of various TCS applications to facilitate identification andnavigation. Various screens may be displayed on the web page.

Thus, in one aspect, the TCS may include a system of classificationgroups, also known as commodity groups. As noted above, a commodity orclassification group is a category of merchandise that is assigned to aproduct to narrow the range of possible HTS code assignments as a firststep in working a specific tariff classification. Thus, for example,where an individual at a corporation responsible for pre-classifyingparts is working with the TCS, the individual can commence the procedureby selecting a relevant commodity group from a menu.

FIG. 5A is a flowchart illustrating the use of the decision tree in theassignment of HTS codes in accordance with an embodiment of theinvention. Assume, for example, that the analyst for a motorcyclemanufacturer needs to assign an appropriate HTS code to a replacementpart, such as a rubber throttle grip. The method of the presentinvention makes the analyst's task straightforward. In step 23, theanalyst selects the application classification group from a menu in theTCS. For illustrative purposes only, the classification group may be“motorcycle handlebar parts.” The analyst may then be given a list ofalternatives in an exemplary subgroup #1, in step 25. One suchalternative, for example, may be “throttle functions”. The analyst maythen selects that alternative and thereupon may navigate to the nextmenu, as shown in step 27. The analyst may be presented with a furtherlist of possibilities, one of which may be “rubber throttle grip” or thelike. Associated with the part description may, depending on theembodiment, be a number of additional descriptive information such as apart number, the motorcycle brands to which the part corresponds, andother relevant information. The analyst may then select the “rubberthrottle grip” in sub-group #2, and arrives at the correct HTS code forthe part at issue, as shown in step 29. At that point, the correct HTScode may be assigned to the product to be imported, and the assignmentmay be recorded in the Item Master.

FIG. 5B is a flow diagram that depicts an exemplary pre-entry process inaccordance with an embodiment of the invention. In this example, “Co.Customs” represents a division of a company that is responsible forobtaining product information from other divisions of the company andapplying appropriate classification information for importationpurposes. This step is described in more detail in the pre-entry processabove: “Co. Customs” may obtain relevant information (step 504) fromother company divisions 502 and customs brokers 503. As discussed above,various additional sources may trigger classification adds or changes.Notifications requiring action include the introduction of new models,customs ruling changes, self-audit discovery, or codes missing at entry.Using this information, the importer may perform appropriateclassifications (step 505). That is, “Co. Customs” may assign HTS codesto products, along with other required information such as extendedcustoms descriptions, legal rationale, and timestamps. “Co. Customs” maytrack Questions and Answers (501A, 501B) with other company divisionsduring the notification process. A Q/A log 508 may be created thatcontains information pertinent to product classification. “Co. Customs”may also perform the classification step and any subsequent audits toidentify errors or discrepancies (step 506), as deemed appropriate. Allclassification information, associated bases for classification, anderrors discovered during a subsequent audit may be entered into the TCSclassification information repositories 515.

During this process of pre-entry classification, the user may takeadvantage of the PWC tool set 500 (which may represent a spreadsheetincluding a comprehensive list of Customs rulings and bases for HTSclassifications) and other classification tools 510 (such as informationfrom third parties or the U.S. Customs Tariff Book) to help ensure theaccuracy of its classifications and to provide the required bases foreach classification. In addition to performing the actual HTSclassifications, the importer should ensure in this illustration thatthe PWC tool set is kept up to date and accurate by performing periodicmaintenance, as shown in step 509.

Thereupon, in step 507, “Co. Customs” may provide updates to customsbrokers 511 with the latest classification data and may provideinformation regarding importation to other divisions 512 of the company,such as corporate export divisions.

FIG. 6 depicts an illustration of a screen within the TCS applicationsuite that permits a user to select an appropriate commodity group. Thescreen includes a template that allows a user to select among a group ofdifferent options. The user can enter a specific commodity group asshown by option 615. In addition, the user may decide to enter othertypes of criteria, such as by inserting a specific selection tablenumber as in blank 613.

As an illustration, an employee of a automobile manufacturer may need toclassify a particular component that is part of a shock absorber of anautomobile. Previously, the employee may have had to perform a lengthyor copious inquiry to identify and isolate the pertinent informationassociated with the particular part. This is especially true where theHTS procedures of the company are handled manually or a scheme forintegration of the phases of operation is absent. In the presentembodiment in FIG. 6, the user can easily navigate to the desiredcomponent by simply selecting the appropriate commodity group from themenu. The user may enter “ABSORBERS” in the entry 615. Alternatively,the user may select the navigational link “ABSORBERS” 619 from thecommodity group menu 617. Thereupon, the user can simply navigate downthrough the decision tree to ultimately arrive at the appropriate HTScode, which then may be assigned to the component at issue and recordedin the TCS database.

As another example, a computer manufacturer may use a TCS whereby theuser is responsible for assigning the appropriate HTS code to aparticular component on a computer motherboard. Commodity groups andcorresponding identifying questions are dictated by U.S. Customscriteria. For illustrative purposes only, the component at issue may bethe integrated circuit used as the system BIOS. Instead of arbitrarilysearching for HTS codes and records pertaining to the system BIOS, theuser can start by selecting the (illustrative) commodity group“MOTHERBOARD.” The user can then view the ensuing list of narrowingquestion categories (e.g., “processor circuits?”, “system memorystartup?”, etc.) to discern which group is likely to include thecomponent at issue. In this example, the user selects “system memorystartup” from the menu, and thereby navigates to the next screen, whichmay contain a list of components, such as “CMOS clock”, “BIOS” or thelike. The user then selects “BIOS” and the applicable HTS code may bemade available and assigned to the corresponding BIOS component to beimported. The classification groups in this example are for illustrativepurposes only, and do not necessarily correspond to the actual groupsassociated with the Harmonized Tariff Schedule.

The TCS may include a selection table. The selection table may, forexample, include an Excel spreadsheet laid out in the decision treeformat described above. The spreadsheet starts with a commodity groupand, based on part data, permits step-by-step refinement inclassification until a single HTS code is isolated. The isolated HTScode can then be established for the part at issue. Other applicablespreadsheet applications may be equally suitable.

The ability for a user to navigate through the TCS and make variousselections, observations, and modifications, renders the pre-entryprocess efficient and provides for a unitary repository of informationthat can be accessed as necessary by individuals in the corporation. Thenavigational structure of an exemplary TCS will now be described in thecontext of the pre-entry process. Various exemplary user interfaces areshown which reflect the benefits of the sophisticated yet robustnavigational capabilities of the TCS. Information that in prior artimplementations was segmented with limited or no navigationalcapabilities is now streamlined into a complete system. Specifically, inthis embodiment four phases of an exemplary Customs compliance processare integrated together to provide a “checks and balances” system whichensures accuracy of information and provides for expedient anduser-friendly search and navigational capabilities. The descriptivemenus discussed below show examples of these navigational features inthe context of the classification process.

FIG. 7 depicts an illustration of an exemplary main menu screen 702 ofthe TCS used in connection with the pre-entry process as described inFIG. 2. This screen 702 allows users to access the TCS on-line functionsand other selected links to other Customs web sites and tools. As such,this web-based screen or similar user application is one of severalfeatures of the TCS in one embodiment. Screen navigation optimizes userefficiency in conducting HTS classification and other functionsassociated with the pre-entry process. As can be seen from the main menu702, the various links throughout the TCS screens uniquely tie thedifferent functions into intuitive workflows. One example in main menu702 is the Classification “Item Master” function 701 which can beaccessed directly from the main menu 702. A user wishing to identify anHTS code for an applicable part can simply select the “Item Master” link701 and navigate to a page which lists, among other information, theselected part number and associated HTS code.

In addition, other links may provide more general navigationalcapability. “Coweb” link 703 may provide a link to the home page of thecorporate intranet of the importer. “US Customs” link may provide a linkto the U.S. Customs web page. “Fedex Trade Networks” link 705 provides alink to the web page of a customs broker. “Japan” link 706 may providelinks to networks of the corporation located in Japan. “QA log” link 707may provide a link to the log created by virtue of correspondencebetween the customs division of the importer and the customs broker.“Toolset” link 708 may allow a user to navigate to the PWC tool set. Anonline user guide may also be available via link 709.

FIG. 8 shows another screen to enable a user to access information fromthe Item Master. In this example, the user has accessed the Item Masterby clicking on the “Item Master” link 701 in FIG. 7, thereby arriving atthe screen in FIG. 8. As shown by the area encompassed by 801, the TCSscreen in this embodiment contains a “headline” logo which may include aplurality of navigation commands to all functions (e.g., “Home”, “SysAdmin”, etc.). Underneath the general navigation commands in area 801lies the sub-functions within the group selected (in this case the ItemMaster Classification).

The illustrative screen in FIG. 8 contains a number of fields useful forthe analyst to navigate through the TCS in performing the variouspre-entry functions. A classify “Item Search” section 803 of the screen,for instance, may allow the user to select different sets of search pathcriteria depending on the function the user is performing. In thisexample, a partial item ID is keyed into the first search path alongwith search criteria Div=N and Classify Status=Classified. The user maythen press the Inquire command 807 to execute the search and obtain thedesired information of the item at issue.

In addition, various labels may be highlighted or colored, such as theCOO entry 805, so as to represent links to other functional screens.This feature gives TCS users a unique workflow advantage and illustratesthe utilities and advantages of the integrated repositories, which areappropriately networked (in some embodiments) and programmed to operatewith overlying user-based software to facilitate ease of exploration ofthe TCS database system.

FIG. 9 shows a screen 902 which in this illustration is derived from thesearch performed in segment 803 using the inquire command as shown inFIG. 8. The results of the item search may be displayed in the “ItemSummary” section 905. Note that the user may choose to go back to theitem search, or perform a mass update of the item records selected, asshown by the options in 901. In addition, the user may change the searchcriteria and initiate another search. The result of the exemplary searchperformed produces a list of Item IDs in segment 905 with theircorresponding “Div” values, Invoice Descriptions, Model numbers, HTScodes, Commodity Groups (if available) and Status. In the example of the“Item Summary” section 905 shown in the screen 902, the user chooses todisplay the Item Detail for record 11200-PWA-020 by clicking on the ItemID control value 903. This selection brings the user to the screen 1002in FIG. 10, discussed below.

FIG. 10 is an illustration of another screen 1002 that presents a viewof the Item Master repository. In particular, the details of the item ID11200-PWA-020 selected in FIG. 9 are displayed. This item details screenmay display all values for an Item Master record, and may provide theuser with a plethora of navigation options. From this screen and theprevious screen, the benefits of integrating information relating toimports using a structured database system for trackingimportation-related data are readily apparent.

In the example of FIG. 10, the 10-digit HTS code 1001 corresponding tothe item at issue is displayed. In this embodiment, the code ispresented as a link, such that the user can navigate to the HTS Masterscreen of the HTS Master repository 121 (FIG. 2) simply by clicking onthe displayed HTS value. In the embodiment where the trade complianceanalyst has access to the Item Master, the analyst can simply insert orselect a part number and view the relevant classification information ofthat part, as in FIG. 10.

Additionally, the “Vendor Identification” 1003 may be displayed, whichin this example identifies the particular supplier of the imported itemat issue. The “Vendor” field 1003 may itself constitute a link such thatclicking on the vendor information 1003 navigates the user to the mainmaster screen of the Vendor Master 125 (FIG. 2). A “Function Code” link1005 may exist showing the associated function code of the product. Thisfunction code may, for example, be an internal code assigned by adivision of the corporation abroad and used for business purposes toidentify parts. In one embodiment, the “Function Code” 1005 alsoconstitutes a link to a maintenance screen. A “Product Attributes” link1007 may also be available for viewing special attributes of the item atissue (such as NAFTA certificates, anti-dumping information, etc.). Asshown by links 1009, the user also may have the option to navigate tothe next Item Master record or the previous record. Further, asillustrated by the set of options 1011, the user may also choose to viewitem history screens, to return to the item inquiry or item summaryscreens, to modify the records displayed, or to add a new Item Masterrecord.

FIG. 11 represents a screen 1102 of an HTS classification. The screen isdisplayed in one embodiment by clicking on the HTS number 1001 from FIG.10. The 10-digit HTS code 1103 may be displayed, along with adescription 1104 of the item. Various additional information 1105relating to the applicable duty rates and other attributes of the itemmay also be available in screen 1102.

The set of illustrative screens disclosed in FIGS. 7 through 11 reflectthe benefits of the integrated TCS system and the ease of navigation fora user to locate and modify information relevant to the importationprocess. Navigational capabilities similar to the ones discussed abovemaybe available for the different phases of the Customs complianceprocess (e.g., Classification, Entry, Post-Entry, and Amendments). Inaddition, cross-navigational capabilities may exist between the datarepositories containing information relevant to the different phases.Different types of menus or screens, and a variety of navigationaloptions, however, may be contemplated in other aspects without departingfrom the scope of the present invention.

Internal-to-Commodity Group Classification Map

In another aspect of the present invention, the corporation or businessentity may introduce into the TCS a mapping of function codes tocommodity groups to synchronize the corporation's “commodity group”classification system used for calculating tariffs with thecorporation's internal business classification system, such as a systemthat classifies merchandise based on function codes. In this aspect, aninternal-to-commodity group classification map may be used. Variouscompanies may classify products they import into the United States inaccordance with an internal classification system. This internalclassification system may be used to classify parts and items forbusiness purposes, for example, rather than for importationclassification purposes. As an illustration, a company that has severaldivisions may include a division abroad that uses its own internalclassification system to keep track of parts it purchases and sells.

Certain companies may employ a system that classifies parts based on thefunction of the part, or other criteria. For example, a particulardivision of a large corporation may classify products by an internal“Function Code” (see, for example, entry 1005 of FIG. 10). In thisaspect of the present invention, a separate map may be created in adatabase that correlates each internal classification to itscorresponding commodity group classification at the top of the decisiontree. This map makes the TCS more robust and the cross-correlation ofdata makes it easier for the corporation to identify particular productsand properly classify them. Internal classifications, whether they be byfunction, composition, or other criteria, may now be mapped in the TCSto classification groups related to Customs compliance. Among otherbenefits, this mapping obviates the need for a user to copiously searchfor products using the internal identifying criteria of a company andthen to manually translate that criteria into a classification relevantto U.S. Customs.

In another embodiment, the map also may include a direct correlationbetween the internal classification and an HTS code. These mapping toolsare invaluable in the pre-entry process for any business entity, andparticularly for a sophisticated corporation with multiple divisions anddifferent types of internal classification criteria and procedures.

The trade compliance analyst responsible for administrating theclassification system accordingly has a new mechanism to facilitateclassification of products. For example, in the instance where theinternal classification system correlates parts based on their function,an analyst who is initially unsure as to which commodity group isapplicable to a given product can now refer to the information in thisinternal classification system. The analyst may specify the function ofthe part, at which point the internal classification system may providethe analyst with details as to the part. Once the analyst identifies thecorrect internal classification of the part, the analyst can then simplyconsult the internal classification map for the commodity groupclassification that corresponds to that internal classification. Assuch, the analyst has an additional vehicle for classifying specificparts. Where the mapping directly links an internal classification to anHTS code, the analyst can simply consult the internal classification andassign the appropriate HTS code to the product at issue without furthereffort.

In other embodiments, and depending on a company's internal operatingprocedures, internal classification systems may provide informationinstead of or in addition to part function. A map can then be createdthat correlates these internal classifications (such as partcomposition, origin, etc.) to the top level commodity group. Thislinkage of data via the correlation map may provide a valuable resourceto an employee responsible for classifying several of many differenttypes of products associated with a business entity.

FIG. 12 shows an exemplary flowchart illustrating aninternal-to-commodity group classification map. An analyst may log intothe TCS or appropriate database and may specify a particular function(step 1201). For example, the analyst may be searching for a partrelated to a braking function for an automobile. Depending on theimplementation of the TCS, the analyst may perform a query to identifythis function, or the analyst may simply specify a particular functionname or code. The database which contains the internal classificationsystem may then provide the analyst with a list of part classificationscorresponding to the specified function (step 1203). The analyst mayidentify the desired part classification from the list, such as a brakepad and its related information. Using the internal classificationsystem, the analyst has now identified the specific part classificationof interest. Next, the analyst may consult the internal-to-commoditygroup classification map to determine the commodity group classificationthat corresponds to the previously-ascertained internal classification(step 1205). An exemplary classification group may be a braking system.Knowing now the commodity group classification, the analyst may simplynavigate through the decision tree to identify and assign to the part atissue the HTS code (step 1207). In other instances, as noted above, themapping may relate to a feature other than function. Further, themapping may be directly to an HTS code. A map may also link internalclassifications to both commodity groups and HTS codes, depending on theselected internal classification.

The embodiment described in FIG. 12 provides the responsible corporateindividual(s) with greater flexibility and more robust navigationoptions when searching for commodity groups and assigning correct HTScodes to parts or products.

FIG. 13 is a table illustrating an exemplary internal-to-commoditygroup/HTS code map in accordance with an embodiment of the presentinvention. The TCS may contain a repository of accessible informationwhich includes an internal classification system 1301 mappedelectronically to commodity group/HTS code classifications 1303. In theillustration where items are assigned different functions (or differentfunction codes), the user has the flexibility of using the map toidentify a particular function. That function in one embodiment may beassociated with a series of parts. For example, “FUNCTION1” isassociated with “PARTA1”, “PARTA2”, and “PARTA3.” Similarly, “FUNCTION2”is associated with “PARTB1” and “PARTB2”. “FUNCTION3” is associated with“PARTC1” and “PARTC2”, and “FUNCTION4” is associated with “PARTD1”. Inother embodiments, a single function code may be associated with asingle item.

A corresponding mapping 1305 may be made in the TCS between the functioncodes on one hand, and a commodity group (or HTS code) on the otherhand. “PARTA1” (which may be a numerical value, a title, or adescription, etc.) corresponds to commodity group labeled (for exemplarypurposes) “GROUP1”. “PARTA2” corresponds directly to a specific HTScode. “PARTA3” corresponds likewise to “GROUP1”. Under “FUNCTION2”,“PARTB1” and “PARTB2” both correspond to the commodity group labeled“GROUP3”. “PARTC1” and “PARTC2” correspond to “GROUP4” and “GROUP5”,respectively. Finally, “PARTD1” corresponds directly to an HTS code.

In other embodiments, mappings may be created within the TCS which linkvarious internal classifications only to commodity groups, or only toHTS codes. FIG. 14 is an illustration of a database map wherein internalclassifications based on function are all linked directly to HTS codes.“FCN1” corresponds here to three items, labeled for illustrativepurposes “PARTA1”, “PARTA2” and “PARTA3”. These parts correspond,respectively, to 10-digit HTS codes “CODEA1”, “CODEA2” and “CODEA3”.Likewise, “FCN2” contains parts “PARTB1” and “PARTB2”, which are linkedrespectively to “CODEA4” and “CODEA5”. “FCN3” links to “PARTC1” and“PARTC2”, which respectively map to “CODEA6” and “CODEA7”. Finally,“FCN4” links to “PARTD1” which is mapped to HTS code “CODEA8”.

Other arrangements may be contemplated whereby (i) internalclassification systems other than or in addition to “function” are used,(ii) multiple linkages or mappings may be used based on multiple typesof internal classifications (e.g., function, composition, country oforigin, etc.), and (iii) maps may be made to commodity groups, HTScodes, or both. Whatever the embodiment, the end result is that the usermay have a unique set of integrated tools to translate businessclassifications to meaningful Customs-relevant classifications. Usingthese tools, the analyst can more easily and efficiently classify itemsfor tariff purposes in the pre-entry process.

As noted above, an importing corporation in one embodiment may have oneor more domestic divisions, along with one or more divisions abroad. Thecorporate division(s) located abroad may have several internal partsclassification systems used for business purposes. These classificationsystems may be distinct from the commodity group classification systememployed by the domestic corporate division and used for computingimport tariffs. Such classification systems for the various corporatedivisions may involve the use of “function codes,” item codes, partsbased on particular categories, etc. This system is part of a corporatedatabase and is used to associate particular parts, products ormerchandise with a particular feature.

In the exemplary TCS system as described above using a corporatedivision located in the U.S. and another corporate division locatedabroad, the TCS system may permit seamless communication of necessaryinformation for Customs compliance purposes. In one illustrativescenario, the domestic corporate division may periodically notify itscorresponding division abroad with files containing information aboutparts requiring classification for importation purposes. The divisionabroad may use a web-based tool integrated with the TCS to access thetransmitted information and to generate part descriptions and suggestedimport classifications. Similarly, the division abroad may periodicallyprovide the domestic division with information or updates about itsinternal classifications. This information may then be introduced intothe internal-to-commodity group/HTS code maps for use by the company inthe importation process.

In the example above involving the two divisions of the corporation, thedivision abroad examines the information regarding part classificationstransmitted from the domestic corporate division. The division abroadmay thereupon extract various information from the tariff-relatedportion of the TCS, such as part number, HTS code, commodity group, partdescription, etc. The appropriate information is then provided for eachpart and a new file may be created by the division abroad. These newfiles may then be transmitted back to the domestic corporate divisionvia the GIFT interface discussed above, or through another appropriateand preferably secure interface. When the domestic division of thecorporation receives these files from the division abroad, the domesticdivision may load them into a specific database within the TCS. The newfiles may be appropriately labeled and integrated, as necessary, withinthe database repositories of the TCS. Links may then be established tovarious fields within these files in order to enable an analyst toaccess this information and cross-reference it with other information.

At this point, Customs personnel appointed by the domestic division canperform an audit of the abroad division's suggested classifications. Inone embodiment, for each part, an analyst uses various applicationsintegrated in the TCS to make an independent determination as to thecorrect HTS code. If the HTS code determined by the analyst differs fromthat supplied by the division abroad, the HTS code determined by theanalyst is used. Ordinarily, an assistant manager or other higher levelemployee or assignee may review the classification and supporting data,and may enter any necessary changes into the TCS database. At thispoint, after the analyst's initial entry, after the abroad division hastransmitted any necessary information, and after the classification hasbeen reviewed by an appropriate personnel, the part's classification maynow be considered “finalized.”

In other embodiments, the division abroad may have no role in performingproduct classifications for tariff purposes. Such examples may includesituations where items other than service parts are designated forimport into the United States. These items may include, for example,non-service replacement parts, automobiles, motorcycles, and powerequipment. The specific implementation of the TCS is dependent on thestructure, function, geographical location, and product offerings of theimporting business entity and other criteria, and may differ widelywithout departing from the scope of the present invention.

The Entry Process

After the classification step is completed, the corporation may thentransmit the relevant information pertaining to the parts forimportation to customs brokers and other entities. In the case of acorporation with divisions in both domestic locations and locationsabroad, the domestic division may transmit the finalized information tothe division(s) abroad. The updated information is maintained in thedatabases within the TCS.

In addition, finalized classifications may be transmitted to designatedcustoms brokers. The classifications may include files that containbasic classification information, product attribute information, andother necessary information for the customs broker to prepare theapplicable paperwork for the shipment(s) designated for importation.

The next step in the process may relate to activities conducted by thecustoms brokers and the corporation to ensure compliance with U.S.Customs regulations. Generally, customs brokers are individualsappointed to submit customs entries on behalf of the importingcorporation to U.S. Customs. These customs entries may be stored in theTCS for use in connection with various “post-entry” activities. Relateddata may be included with these customs entries, including informationregarding foreign vendors and other manufactures, etc.

FIG. 15 shows an illustrative flowchart of the classification processfollowed by the entry process using the TCS. During the entry process,the customs broker may tender relevant information to U.S. Customsconcerning an imported shipment. During initial classification 1501 asdiscussed at length above, the importer in this embodiment may gatherproduct attribute information from the manufacturer. For example, instep 1509, the importer may obtain information regarding productclassification from offshore manufacturers 1503, other manufacturers1505, and U.S. Customs 1507. “Co. Customs” (such as a division of theimporter responsible for importation procedures) may use thisinformation to update product attributes in the TCS repositories 1516 asdiscussed in greater detail earlier in this disclosure (step 1511).Next, the “Co. Customs” division of the importer may provide all productattribute information to the customs brokers 1514 prior to shipment(step 1513). In one embodiment, this information is provided to thecustoms broker on a daily basis (e.g., via the product dictionary in theTCS). The customs brokers may update their local systems with thisproduct attribute information (step 1515).

Next, the import entry process flow 1517 is described. In addition toproduct attribute information 1515, the customs broker obtains anynecessary information concerning a shipment to be imported from offshoremanufacturers (1518) and other entities with relevant information. Thecustoms broker may thereby prepare import documents 1519, as discussedat greater length in connection with FIG. 16 below. At the time of entryof the shipment into the United States, the customs brokers may flag andreference the product attribute information (HTS codes, NAFTAcertificates, countervailing duties, etc.) that is supplied by theimporter and that corresponds to the contents of the shipment (1520). Inthe instance where relevant product attribute information is missing orthe customs broker is unclear about some issue relating toclassification, the customs brokers may notify “Co. Customs”, and a“Question and Answer session” 1512A may ensue. The information receivedfrom and supplied to the customs broker during this process may berecorded into a Q/A log 1512B in the TCS. The customs broker may nextcomplete the entry process by supplying U.S. Customs 1522 with theappropriate forms and paying the applicable duty (1521).

Harmonized Tariff Schedule Classification Audit Using Entry Data

In another aspect of the present invention, an HTS Classification auditmay be performed using entry data. A customs broker working for theimporter may receive information about a specific shipment from theimporter, a supplier of the importer, a freight forwarder, or anotherentity. The customs broker is relegated with the responsibility ofpreparing the appropriate documentation for presentation to U.S. Customson behalf of the importer. The collection of documentation that thecustoms broker prepares is called an entry packet. The actual contentsof the entry packet may vary depending on the type and origin of theshipment(s) (among other factors). Generally, however, the entry packetcontains a Customs 7501 form for declaring applicable duties, acommercial invoice describing the products being shipped, and a shippingmanifest which indicates shipping information such as the port oforigin. The shipping manifest may also embody a bill of lading, or insome instances a separate bill of lading may be included.

In one embodiment, the customs broker consults the Item Master, alsoknown as the product dictionary, to determine which HTS codes apply tothe products in the shipment at issue. Thus, while the importer assignsappropriate HTS codes to imported products in the entry process, thebroker may use those classification assignments in determining thetariffs to be paid. The broker may use the product dictionary to applyexisting HTS assignments to shipments. In one embodiment, an “HTS code”field is available for each product in the Item Master repository. Ifthe broker cannot find the relevant HTS code in the product dictionary,the broker generally must call the importer to ascertain the correct HTScode. For example, when product attribute information is missing,customs brokers may tender requests to the importer. The importer, inturn, may provide the appropriate answers, and logs the informationprovided into the TCS.

The broker may also assign what are known as “attributeclassifications.” Attribute classifications are classifications of otherrelevant attributes relating to the imported products. Such attributesmay include, for example, classifications relating to NAFTAcertificates, and FAA and Department of Transportation restrictions.These attribute classifications may subject the items to additional ordifferent tariffs. The customs broker may report these classificationsto U.S. Customs and pay duties based upon this report. In addition,certain HTS codes may be subject to various other qualificationsrelevant to the entry packet, such as any anti-dumping or countervailingclassification related to a product. Generally, the broker has its ownbook or database of relevant HTS classifications from which it canascertain whether or not specific attribute classifications apply to aparticular item. In other instances, the broker may be aware thatproducts have special attributes simply by the broker's generalknowledge in the industry.

In one embodiment, a database containing all of these broker assignmentsmay be received from the broker and electronically and methodicallycompared with an internal product database of similar informationcreated and maintained by the importer. A report of inconsistencies maythen be generated, and U.S. Customs may be notified of anydiscrepancies. A broker may submit an entry packet it prepared to U.S.Customs. Concurrently or shortly thereafter, the broker may submit thereport electronically to the importer. The importer may then consult itsItem Master and/or other internal records for comparison purposes and toverify the accuracy of the submitted entry packet. Where discrepanciesare found, the importer typically can submit an amended entry packet toU.S. Customs within ten (10) days of the submission of the initialincorrect entry packet. Should this occur, the amended entry packetsimply supercedes the earlier entry packet. Where, on the other hand, adiscrepancy or error is found after the ten day window allotted byCustoms, an official amendment may be prepared and submitted to Customscontaining the corrected information and any bases for thediscrepancy(ies).

FIG. 16 shows a flowchart describing the HTS classification audit usingentry data. At step 1601, the broker prepares records, typically in theform of entry packets, which may constitute the documentation supportingthe amounts to be paid on a given shipment or set of shipments. Thebroker may then submit the entry packet report to U.S. Customs as theitems are imported into the country, and may pay the applicable duty(step 1603). Thereupon, the broker may scan the entry packet into anelectronic format and submit it electronically to the importer (step1605) for entry in the TCS (step 1607). The importer may then comparethe entry packet prepared and submitted by the broker with its owninternal records (step 1609). In one embodiment, the importer consultsits internal Item Master to ensure that no discrepancies exist betweenthe broker's entry packet and the information in the Item Master. Shoulddiscrepancies exist, an inconsistency report may be generated and,depending on the time of importation, an amended entry packet with thecorrected data may be generated (step 1611). The importer may thennotify U.S. Customs of the discrepancies by, for example, submitting theamended entry packet (step 1613).

FIG. 17 is an illustration of a screen 1702 used for accessing the ItemMaster in performing an audit using entry data. The example shows aproduct having an invoice number XOHONCAN715SCA (1705). In thisembodiment, the user may view classification information regarding thispart by clicking on the invoice number. The user can also view detailsabout the specific product in question by clicking on the “ProductDetail” link 1701. The user may also determine the corresponding HTScode of the product by clicking on “HTS detail” 1703. Using thesenavigational features, the user can examine the entry packet submittedelectronically by the customs broker and compare it to the relevantfields in the Item Master to flag any errors or inconsistencies.

FIG. 18 shows another example of a screen 1802 that can be accessed byselecting the “HTS Detail” link 1703 in FIG. 17. FIG. 18 alsoillustrates the utility of the TCS by its advanced navigationalcapabilities and its user-friendly applications screens. These screensmay be part of an integrated application which overlaps and links to theunderlying database repositories which provide for uniform and easyaccess to and editing of information pertinent to U.S. Customs. Here,the HTS code 1804 of the selected product can be identified and readilycompared with the information in the entry packet submitted by thecustoms broker to U.S Customs. Further, the screen 1802 providesinformation about any necessary product attributes (if applicable), suchas whether an anti-dumping duty 1805 or a countervailing duty 1806 mayapply to items in the shipment. These records can be quickly and easilycompared with the information in the electronic entry packet provided bythe customs broker. Any errors can thereby be identified and appropriateremedial measures may be taken.

Customs Duty Audit Using Post-Entry Data

In another aspect of the present invention, a customs post-entry audittechnique is disclosed. For various reasons, the information reported bya customs broker to U.S. Customs is sometimes determined in retrospectto be inaccurate. This determination may be made after the goods havebeen imported into the United States. Reasons for inaccuracy mayinclude, for example, incorrect or incomplete documentation pertainingto imported products, inadvertent errors, and the like. In certaininstances, the inaccuracies may not be detected in the entry-auditdiscussed above. For example, information provided by the receiver ofthe goods that is received after entry into the United States mayreflect errors in the documentation of the importer or customs broker.

These inaccuracies need to be addressed and fixed in a more efficientand reliable manner than exists in present systems. The TCS may addressthe present deficiencies in the art by providing an audit mechanismusing post-entry data. Post-entry data may include not just informationin the product dictionary, but also information received by the importerfrom the receiver of the shipment after its entry into the UnitedStates, among other entities. Based on this collection of post-entryinformation, for example, the importer may determine that the number ofitems actually imported into the United States is different from thenumber of items declared on the Customs 7501 form by the customs broker.A shortage or overage of duties paid may be determined, and appropriateadjustments can thereby be generated and submitted to U.S. Customs. Inaccordance with the present invention, an integrated method forpost-entry audits can be performed efficiently and accurately using theTCS system.

In one embodiment, a broker database of the information reported by thecustoms broker to U.S. Customs is electronically delivered by thecustoms broker to the importer. Meanwhile, the importer may create adatabase of post-entry information pertaining to products after theyenter the port, such as the actual number of units that is received, theactual price paid for the product, the actual value of the product, andother relevant information. The importer may input this information intothe repositories of the TCS. The broker database may then beelectronically and comprehensively compared to the importer's databaseof information. Using the TCS, inconsistencies may be identified, areport of any necessary adjustments may be made, and adjustment noticesmay be generated by the importer via the TCS and delivered to U.S.Customs.

The database of post-entry information may also track royalty paymentsthat the importer makes to third parties for use of third partyintellectual property in the importer's products. These payments may beused to offset the valuation of the products that originally served asthe basis for determining the duty that was paid.

FIG. 19 is a flowchart depicting the post-entry audit method inaccordance with an embodiment of the present invention. After thecustoms broker submits the entry packet to U.S. Customs, it may scan theentry packet records as an electronic image and transmit the image tothe importer (step 1900). Meanwhile, the importer may create and recordany relevant post-entry information, such as information obtained fromthe receiver of the imported goods, or information from other sources(step 1902). The importer may then compare the post-entry informationcontained in the TCS with the electronic entry packet records providedby the customs broker (step 1904). The importer may identify anyinconsistencies or discrepancies in the tariff actually paid versus thetariff that should have been paid based on post-entry information (step1906). The importer next generates, if necessary, a report ofadjustments and may input that report into the TCS (step 1908). Finally,the importer submits a formal amendment to U.S. Customs reflecting thediscrepancy and identifying the appropriate adjustments (e.g., anoverpaid tariff) (step 1910).

FIG. 20 shows another example of a main menu 2002 of the TCS applicationin accordance with an embodiment of the present invention. The main menu2002 may have integrated features and links that further reflect theefficient navigational capabilities of the present invention and thatenable efficient post-entry audits. As noted previously, the main menu2002 may allow users to access the TCS on-line and other selected linksto other Customs Web sites and tools. The “Entry Audit Results” link2001 may provide post-entry workflow navigation linkages for examiningentry audits results and exceptions. Using the “Vendor Payment” link2003, users may review vendor payment records. Users may also review,using the “Payment Balancing Results” link 2005, balancing results andexceptions. All of these features may be useful in various facets of thepost-entry process.

FIG. 21 is a screen illustrating the post-entry audit capabilities ofthe TCS in accordance with an embodiment of the present invention.Screen 2102 of FIG. 21 is an exemplary page that is displayed by virtueof a user clicking on the “Entry Audit Results” link 2001 in FIG. 20. Inthis embodiment, the TCS screen contains a headline logo (“TradeCompliance System”) followed by navigation commands to all functions(e.g., “Home”, “Audit Exceptions”, etc.) (2101). The “Audit ResultsSummary” section 2107 may allow the user to enter an Entry Number 2105and view the internal audit results. In this example, a user keyed thedisplayed entry number and pressed the “Inquire” command 2103 to executethe search. The resulting screen shows both summary results and auditexceptions (2107). This example displays different audit group summaryresults. The user may scroll down to the audit exceptions section toview detailed errors (see FIG. 22).

FIG. 22 shows a screen 2202 containing an “Audit Exceptions” summary2209 as selected from the links available in FIG. 21. The “AuditExceptions” summary 2209 show the detailed audit errors discovered inthe post-entry audit process. The user can decide which errors tocorrect. The users may have various navigation links to use duringproblem determination analysis. For example, the “Invoice Number” link2201 may enable the user to navigate back to an “Entry History HeaderDetail” screen. The “Item ID” 2203 may link the user to the same screen.The “Line#” link 2205 may permit the user to navigate to the “EntryHistory Product Detail” screen. Further, links 2207 allow the user toreturn to a “Change Criteria” or “View Audit Exceptions by Audit GroupFor This Entry” screen.

FIG. 23 shows another screen 2302 that is generated in thisimplementation by clicking on the “View Audit Exceptions” link 2207 inFIG. 22. As this example illustrates, the TCS of the present inventionmay provide the user with a plethora of sort sequences of the sameinformation to enhance and render more efficient the post-entry problemanalysis process. The exemplary entry 2301 provides a plurality ofnavigation links to detailed information on other screens. For example,included on this screen are links to “Entry History Detail”, “CommercialInvoice Detail”, “Line Item Detail”, and “Item Master Detail.” The userthus has a comprehensive set of linked tools for identifying errors andsolving audit-related problems. Further, as shown by icon 2303, the usermay also navigate back to “Entry Audit Results” simply by clicking onthat link.

In short, the TCS may dramatically streamline the otherwise cumbersomeprocess of post-entry audits. The user may have a number of links fromwhich to choose. The user may enter or change information, which entriesare recorded into the data repositories and available for subsequentviewing by another user. The navigational capabilities of the TCS mayprovide the maximum available tools for a user to identify and isolateaudit exceptions for performing subsequent remedial measures.

In another embodiment, an analyst may also utilize a “value adjustments”function in the TCS. This function retrieves debit/credit adjustmentsfrom an accounts payable system that contains the quantity overages andshortages from the importer's vendors. The analyst may then use an“Amendments” function to make adjustment to the importer's entries andto report the value and quantity discrepancies to U.S. Customs throughthe Amendments process.

Linking Customs Entry Packets to Electronic Entries

In another aspect of the present invention, a method for linking customsentry packets to electronic entries is disclosed. As discussed at lengthabove, the customs broker often submits entry information to U.S.Customs in the form of entry packets. Each entry packet typicallyincludes 7501 forms and commercial invoices with duty amounts and billsof lading. The broker may also deliver a text file called an “electronicentry” to the importer on a periodic basis. The file may incorporate theentry packet and identify each incoming shipment in a header (includingthe ID of the shipper, the total value of the shipment, and the totalduty paid). Under each header may be a series of records. Each recordmay identify each item in each shipment.

The customs broker may scan the entry packets and send image files ofeach entry packet electronically to the importer on a periodic basis.The importer may store this image data in a database and link eachshipment in the electronic entry file to the image of its associatedentry packet.

FIG. 24 is a flowchart of the electronic linking process in accordancewith an embodiment of the invention. In step 2420, the customs brokerprepares an entry packet. The customs broker then submits that entrypacket to U.S. Customs (step 2440). The broker may also scan the entrypacket into an electronic file or series of files (step 2460).Thereupon, the broker delivers the electronic entry packet to theimporter (step 2480). Using the integrated capabilities of the TCS, theimporter can store the entry packet in an associated repository (step2482). Next, the importer may link electronically the entry packet fileto associated shipment information maintained, received, and/orgenerated by the importer (step 2484). In other embodiments, anddepending on the TCS configuration, the importer may link other oradditional types of information to the entry packet file.

The ability to link electronic entry packet to associated shipmentinformation again streamlines the process of efficient record-keepingand accurate auditing. Because the files are linked together, the userno longer needs to perform arbitrary searches to ascertain informationabout a particular shipment. The user can simply select the associatedshipment or entry packet. The user can then examine the underlyinginformation associated with and linked to the shipment at issue bynavigating from one set of records to its linked counterpart. As aresult, both the record-keeping and the auditing processes are made mucheasier and more efficient. In addition, the TCS maintains alogically-integrated set of information, rather than a mereconglomeration of data from which the user must arbitrarily performinquiries until he or she can find the requested information for theoperation at issue.

FIG. 25 shows an example of a TCS screen 2502 containing links to theelectronically recorded entry packet information. In this example, an“Entry History” number 2504 is assigned to the entry packet forsubsequent identification purposes. The entry packet shown has threeelements. The user may navigate to the CF7501 Customs form by clickingon the link 2501. The user may also access directly the CommercialInvoice of the shipment associated with the entry packet by simplyclicking on the link 2502. The user may also navigate to the EDI byselecting link 2503. The entry packet may be linked in other embodimentsto additional information. An illustration of the 7501 form related tothe entry packet is shown in the screen 2602 of FIG. 26.

FIG. 27 shows an screen illustrating the utility of linking entrypackets to shipment information in accordance with an embodiment of thepresent invention. The TCS screen 2702 in this embodiment provides theuser with the ability to navigate to various desired aspects of aparticular shipment. “Entry Packet Info” link 2701 may allow the user tonavigate back to the entry packet screen 2502 in FIG. 25. The user mayalso examine information regarding the shipment(s) at issue based oncriteria including “Header/CI” (2703), “HTS” (2705), “Product” (2707),and “Event” (2709). The user is also provided in this embodiment with acomprehensive list 2711 of information linked to and directly relevantto the entry packet at issue. From this description, the advantagesassociated with the linkage of information are readily apparent. Audittimes may be decreased. Records may be more easily found. Shipments maybe examined using a variety of criteria.

Two-Pass Harmonized Tariff Schedule Classification System

In another aspect of the invention, a Two-Pass HTS classification systemis disclosed. The classification process involves, among other things, areview and accurate understanding of pertinent rulings issued by U.S.Customs. As a result of these complexities, the classification processcan often require a level of skill higher than that posses by someanalysts. Accordingly, in one embodiment, the TCS uses a two-passclassification process. In particular, a classification analyst maypreliminarily classify each product by comparing information about eachproduct with information concerning the HTS codes, such as by using theavailable tools and references discussed earlier in this disclosure. Asa first pass, however, the analyst may simply classify products byconsidering the relevant HTS codes without considering U.S. Customsrulings or other specialized information potentially relevant to theclassification process. The analyst may store these classifications in arepository in the TCS database, along with explanations for theclassification, each known as the “basis for classification.”

Subsequently, the information in the repository input by the analyst maybe reviewed during a second pass by other personnel. The secondpersonnel can review the information in the database for accuracy andconsistency, this time taking into consideration other bases forclassification. Such other bases may include information provided byother divisions, pertinent U.S. Customs rulings, attributeclassifications, and other specialized information. The second personnelmay then correct any errors or inconsistencies in the database. Usingthe two-pass method, an analyst can perform an overall classification ofproducts at an efficient pace, while another more qualified personnelcan review the analyst's work by entering into the TCS system andexploring the analyst's classifications in light of Customs rulings andother criteria. This process helps ensure greater accuracy ofclassification results while maintaining efficiency. The integratedcapabilities of the TCS system, which enables multiple users to accessrelevant database, renders the two-pass system particularly efficient.

FIG. 28 depicts a flowchart of the two-pass classification process. Instep 284, an analyst may enter the TCS system and, using the tools athis disposal as discussed above, may assign HTS codes to the products atissue. At step 286, the analyst stores these assignments in a datarepository in the TCS. Thereafter, at step 288, the classificationassignments made by the analyst may be reviewed by other personnel. Theother personnel may use a variety of tools in reviewing the assignmentsand corresponding “bases for classification” made by the analyst. Forexample, the reviewing personnel may consult the PWC tool set 2804, theHTS Master 2803, the Item Master 2802, applicable U.S. Customs Rulingsand regulations 2801, or other relevant criteria 2800.

Electronic Reimbursement of Customs Broker

A customs broker ordinarily pays the duty for the importer with respectto a particular shipment. The broker thereafter transmits invoices tothe importer seeking reimbursement. Reimbursement can take a significantamount of time due to, among other things, the time-consuming nature ofentering data from broker invoices. The importer's approval and paymentprocess injects additional delays into the mix.

Accordingly, in another aspect of the present invention, the TCS speedsup the process of reimbursing the customs broker for duties that he haspaid on behalf of the importer. In particular, the TCS provides anautomated, electronic reimbursement system. Instead of receivingreimbursement invoices in the form of copious paperwork, the invoices inone embodiment are sent and received electronically. Using theintegrated capabilities of the TCS and its multi-faceted search andretrieve functionality, an analyst may then link the electronic invoicesto the applicable underlying documentation. Such underlyingdocumentation may include, for example, images of the entry packetsubmitted on behalf of the shipment at issue, the broker's invoice orbreakdown of expenses, and other information. All of this documentation,including the electronic invoice of the broker, may then be reviewed andapproved on-line, with links to related documentation available so thatany questions can be answered and any discrepancies can be quickly andauthoritatively remedied.

With the electronic reimbursement system, the analyst need no longertype in complicated entries from error-prone paper forms supplied by thecustoms broker. This electronic integration of the invoices with theapplicable information in the TCS system reduces errors made during theprocess of human data entry, and speeds up the process of reimbursementfor the benefit of the importer and customs broker alike.

FIG. 29 is a flow diagram of an exemplary TCS broker invoicereimbursement system in accordance with an embodiment of the presentinvention. At step 240, the broker creates electronic invoices 242 aswell as the images of the related entry packets 244 as discussed ingreater detail above. During the importer's TCS broker invoice process246, the importer obtains the electronic invoices 242 from the broker.The importer also obtains the corresponding entry packet images 244 fromthe broker. Next, in the embodiment shown, the importer assigns ageneral ledger account number and cost center in order to identify andproperly categorize the invoice and associated documentation. An analystfor the importer may also be designated to maintain various facets ofthe broker invoice status.

In performing the steps in 246, the importer uses the various applicableTCS screens 250 to navigate to the relevant documentation pertaining tothe invoice. The importer may enter the invoice into a broker invoicetable 248, and, using the methods discussed earlier herein, the importermay link the invoice to the entry packet information.

At the broker invoice processing step 252 of the importer's customsdepartment, the various details associated with payment processing maybe performed. The department may, for example, review the date or age ofthe invoices 254. The department may also compare the broker invoiceswith the information contained in the entry packet to ensure that therecords are commensurate with one another. Once the accuracy of theinvoices has been verified as accurate, the department may transmit asummarized payment request (step 256) to the accounts payable (“A/P”)department for invoice processing.

In the accounts payable department according to the disclosedembodiment, an employee reviews the summarized payment request receivedfrom the customs department (step 260). The employee may also comparethe request with its own summary of payments to ensure accuracy and thatduplicative reimbursements are avoided. The employee may also processthe electronic broker invoices through the company's weekly A/P paymentcycle. Payment is then transmitted to the customs broker. Typically, theemployee also creates remittance information for entry into the TCS toreflect the reimbursement and to “complete the picture” within the TCS.

The automated and step-by-step nature of the present methodsignificantly streamlines and speeds up the process of providing brokerreimbursement. It also helps reduce or eliminate unnecessary errorscreated in the course of human entry of data. Further, the informationpertaining to reimbursement can be stored in the TCS and linked withother information concerning the shipments at issue. An analyst maythereafter peruse the database and glean all relevant informationconcerning a shipment, the items shipped, the documentation presented toU.S. Customs, any subsequent audits performed, and the reimbursement ofthe customs broker. The analyst has access to a number of user-friendlylinks through which he or she can navigate through the database toidentify and isolate particular records of interest. The information canbe subsequently reviewed or audited by other personnel with theappropriate permissions to access the TCS.

TCS Online Screen Navigation and Linkage

As discussed herein, the TCS in one embodiment includes an integratedweb or other application suite that addresses customs and import-relatedissues including Classification, Quantity, Transaction Value Reportedand Unreported, and Record Keeping, as well as specific compliance areasthat meet specified standards for imported items. Such imported itemsmay include, for example, service replacement parts, autos, motorcycles,power equipment, racing parts, etc.

As explained above in connection with FIG. 2, many of the on-linefunctions of the TCS application/database suite perform primaryoperational tasks essential for an effective U.S. Customs compliancesystem. These tasks may be categorized into four groups or phases ofoperation:

1) Pre-Entry (Classification)

2) Entry History

3) Post-Entry (Audits and Payment Balancing)

4) Amendments

The tasks within each phase of operation are designed in the TCS forprocess efficiency and user-friendliness, which in turn is accomplishedthrough a complex yet integrated scheme of navigational linkages betweenfunctions and interrelated information. These navigational paths,discussed throughout the course of this disclosure, provide users with aunique process flow within the TCS application suite and provide theimporter with a strategic business advantage over other methods of TradeCompliance operations. As noted at length above, documentation stored inthe various repositories of the TCS is integrated through a series ofrelated links such that functions and information that are relevant canbe easily perused.

The navigational linkages may permit robust task flow within and acrossthe TCS functions. No longer need records or copious paperwork bearbitrarily kept in various locations for an analyst to expendinordinate amounts of time processing. No longer need the importerconstantly have to correct significant errors that otherwise could havebeen avoided through the streamlined and linked process flow availablewithin the TCS and the integrated nature of its respective datarepositories. No longer need various employees review records andseparately make amendments, while not aware of or synchronized with theactions of each other. The navigational linkage system of the TCSprovides each user with the ability to access a unified set of data withfunctions interlinked so that data amendments and audits can be readilyidentified and that information relevant to an importation can bequickly identified and scrutinized as necessary.

Integration of Phases of Importation Process

In addition, the TCS system of the present invention may provide aunique electronic linkage of the various phases of U.S. Customscompliance. The integrated nature of the various phases (classification,entry, post-entry, amendments) means that various records can be easilycompared to one another even though the records may be associated withdifferent phases of the importation process. A logical integration helpsensure consistency of information and minimizes the errors associatedwith incorrect tariffs paid and erroneous paperwork.

An illustration of the navigational capabilities of the TCS is set forthin FIG. 30. A user first logs on via a security login screen 3001 byproviding a login name 3002 and a password 3003. After the user isvalidated, he or she is brought to a main screen 3004 similar to themain menu depicted in previous figures. The main menu in this embodimentmay contain a variety of options 3005 and links. As an illustration,there may be a plurality of links, each relating to a particular phaseof operation. Link set A may relate to pre-entry or classificationfunctions. Link set B may pertain to entry functions. Link set C mayprovide access to post-entry functions such as auditing and paymentbalancing. Link set D may provide access to amendments. In otherembodiments, the links are not per se categorized into these fourclassifications because actions taken may be common to differentclassifications. In still other embodiments, the navigational system mayaddress only a subset of these four links. However, the navigationalcapabilities nonetheless enable the user to access all phases ofoperation in a user-friendly application screen. The user can alsodirectly access and search the Item Master 3006 from the main menu 3004.

The main menu 3004 further provides a number of additional TCS SystemLinks 3008. In this example, “Coweb” may bring the user to the company'sintranet, which may include a suite of functions dedicated toimportation and U.S. Customs processing. Link 3007B may take the userdirectly to a U.S. Customs web site, or other repository of U.S. Customsrelated information for use in classification and other purposes. Link3007C provides in this embodiment a link to a customs broker, which inthis instance is Fedex Trade Networks. A link 3007D to the web site ofthe United States International Trade Commission may be provided. A link3007E to a corresponding division of the corporation in Japan may existfor, among other things, perusal by the analyst of the internalclassifications of items. A Q/A log 3007F may also be obtained that mayrecord questions and answers received from and provided to customsbrokers and other third parties. A separate toolset link 3007G mayprovide the user with a plethora of other tools and links for navigatingthrough the integrated data repository and finding information relatingto a desired shipment, payment, audit, amendment, etc. A link 3007H to auser guide may conveniently enable the user to consult online help withrespect to understanding various features or functions of the TCS. Alink 3007H may also allow the user to contact U.S. Customs, or,depending on the implementation, another division of the corporation orsimilar entity.

In addition to the set of available links 3008, the analyst in thisimplementation may access from the main menu a variety of TCSapplication functions 3013. The specific functions available will dependon the specific implementation; however, functions relating to at leastsome of the four main phases of operations may be presented. The usermay access Classification functions 3009, entry-related functions 3010,entry packet related functions 3014, Internal Entry Audits 3001 andpost-entry Amendments 3012.

In addition, for those users with appropriate permissions, a SystemAdministration menu 3020 may be provided that, in one embodiment, can beaccessed directly from the main menu. In this example, the systemadministrator has control over attributes such as security maintenance,ADD/CVD maintenance, product attribute control, data transmission, andreference code maintenance. A comprehensive set of tools are thereforeavailable on-line for the system administrator, who can make updates andgenerate changes as necessary while being logged into the system andwithout interfering with the independent search or data entry efforts ofothers.

The extensive and robust navigational capabilities of the TCSdramatically improve the Customs compliance and importation processes.While the principles described herein can apply to a TCS system suitablefor any type or size of corporate or business entity or partnership, theinvention has significant utilities and advantages for large and diversecorporations, or for business entities that use a large number ofdifferent suppliers, vendors, or manufacturers. The maintenance of allpertinent data for U.S. Customs compliance in one streamlined databasegreatly reduces the efforts and ultimately the expenditures required bya company for maintaining accurate records and ensuring compliance withapplicable customs rules and regulations. The navigational capabilitiesas shown in this disclosure further render efficient the internalprocess of tracking electronic documentation and making logicalassociations of certain document types for facilitating searches.

While the present invention has been described herein as relating to asuite of web-based applications with appropriate software layering todatabase repositories (which may constitute hard drives, tape drives,etc.), the TCS need not necessarily be a web application and instead mayuse another user interface-based application suite integrated with theunderlying data repositories. The TCS also need not be located in oneparticular region; instead, and depending on the implementation, abusiness entity may distribute the TCS functionality and available amonga plurality of geographical areas.

The previous description of the disclosed embodiments is provided toenable any person skilled in the art to make or use the presentinvention. Various modifications to these embodiments will be readilyapparent to those skilled in the art, and the generic principles definedherein may be applied to other embodiments without departing from thespirit or scope of the invention. Thus, the present invention is notintended to be limited to the embodiments shown herein but is to beaccorded the widest scope consistent with the principles and novelfeatures disclosed herein.

We claim:
 1. Computer-readable storage media embodying a program ofinstructions executable by a computer system to perform a method ofverifying the accuracy of broker invoices submitted by customs brokersto an importer which seek reimbursement for payments previously made bythe customs brokers to customs agencies on behalf of the importer inconnection with multiple shipments from multiple sellers that weredestined for the importer, the method comprising: receiving entrypackets in a computer system that is managed by or on behalf of theimporter from the customs brokers, each packet including at least oneform which one of the customs brokers previously completed and deliveredto one of the customs agencies about at least one of the shipments ofimported goods from at least one of the sellers that were destined forthe importer, the form including an amount of a tariff paid by thecustoms broker to the customs agency; storing the entry packets in atleast one physical storage device that is part of the computer system;receiving seller invoices in the computer system, each seller invoicerequesting payment to a seller relating to at least one of theshipments; storing the seller invoices in at least one physical storagedevice that is part of the computer system; receiving broker invoices inthe computer system from the customs brokers, each broker invoicerequesting that the importer reimburse one of the customs brokers formoney previously paid by the customs broker to at least one of thecustoms agencies as a tariff on at least one of the shipments ofimported goods; storing the broker invoices in at least one physicalstorage device that is part of the computer system; establishing andstoring a logical link within the computer system between each brokerinvoice and each entry packet which relates to the broker invoice afterthe broker invoice and each related entry packet is received and storedin the computer system; establishing and storing a logical link withinthe computer system between each broker invoice and each seller invoicewhich relates to the broker invoice after the broker invoice and eachrelated seller invoice is received and stored in the computer system;receiving a request in the computer system for information about aparticular broker invoice after each logical link to that particularbroker invoice has been established and stored; in response to therequest, locating and examining each entry packet and each sellerinvoice which relates to the particular broker invoice by navigatingthrough each previously-established link between the particular brokerinvoice and each related entry packet and seller invoice, respectively;determining that the amount of the reimbursement request in theparticular broker invoice is incorrect based on a comparison betweeninformation within the particular broker invoice and information withineach entry packet and/or seller invoice that is linked to it; andreimbursing the customs broker who submitted the particular brokerinvoice for an amount different than what is in the particular invoiceas a result of the determined incorrect amount.
 2. The computer-readablemedia of claim 1, wherein the method further comprises: generating anelectronic approval for reimbursing the customs broker; and causing thecustoms broker to be reimbursed in accordance with the electronicapproval.
 3. The computer-readable media of claim 1 wherein each form ineach entry packet is promulgated by the customs agency.
 4. Thecomputer-readable media of claim 1 wherein each entry packet includes acommercial invoice relating to the imported goods.
 5. A computer systemmanaged by or on behalf of the importer and configured to perform amethod of verifying the accuracy of broker invoices submitted by customsbrokers to an importer which seek reimbursement for payments previouslymade by the customs brokers to customs agencies on behalf of theimporter in connection with multiple shipments from multiple sellersthat were destined for the importer, comprising: an input systemconfigured to receive entry packets from the customs brokers, eachpacket including at least one form which one of the customs brokerspreviously completed and delivered to one of the customs agencies aboutat least one the shipments of imported goods from at least one of thesellers that were destined for the importer, the form including anamount of tariff paid by the customs broker to the customs agency; amemory device configured to store the entry packets; an input systemconfigured to receive seller invoices, each seller invoice requestingpayment to a seller relating to at least one of the shipments; a memorydevice configured to store the seller invoices; an input system furtherconfigured to receive broker invoices from the customs brokers, eachbroker invoice requesting that the importer reimburse one of the customsbrokers for money previously paid by the customs broker to at least oneof the customs agencies as a tariff on at least one of the shipments ofimported goods; a memory device configured to store the broker invoices;a processor configured to establish and store a logical link betweeneach broker invoice and each entry packet which relates to the brokerinvoice after the broker invoice and each related entry packet isreceived and stored; a processor configured to establish and storing alogical link between each broker invoice and each seller invoice whichrelates to the broker invoice after the broker invoice and each relatedseller invoice is received and stored; a processor configured to receivea request for information about a particular broker invoice after eachlogical link to that particular invoice has been established and stored;a processor configured to, in response to the request, locate each entrypacket and each seller invoice which relates to the particular brokerinvoice by navigating through each previously-established link betweenthe particular broker invoice and each related entry packet and sellerinvoice, respectively; a processor configured to determine that theamount of the reimbursement request in the particular invoice isincorrect based on a comparison between information within theparticular broker invoice and information within each entry packetand/or seller invoice that is linked to it; and a processor configuredto cause the customs broker who submitted the particular invoice to bereimbursed for an amount different than what is in the particularinvoice as a result of the determined incorrect amount.
 6. The computersystem of claim 5, wherein: the processor is further configured togenerate an electronic approval for reimbursing the customs broker; andthe processor is further configured to cause the customs broker to bereimbursed in accordance with the electronic approval.
 7. The computersystem of claim 5 wherein each form in each entry packet is promulgatedby the customs agency.
 8. The computer system of claim 5 wherein eachentry packet includes comprise a commercial invoice relating to theimported goods.